Research

Research Programs

Our center is actively working on the following research subjects:

Bank and Insurance Capital Regulation
We study the role of bank capital, how should it be calculated and how much capital should financial institutions set aside. Bank capital is at the hart of the most fundamental and controversial debates in the agenda of policymakers since the beginning of the 2007 crisis. However, academic literature on the subject is too old, and does not definitely cover the innovation introduced by Basel III and Solvency onward.

Fundamentals of Financial Regulation
Financial regulation is not only about bank capital. Other forms of regulation engage Banks, Insurances and Asset Managements. For example, OTC derivative markets have been object of a particular focus after the financial market including region specific regulations such as the MIFID II proposed by the European authorities.

Paradigm Shift toward a New Finance
Mainstream Finance and Macroeconomics have been following parallel and often conflicting tracks. This has introduced uncertainty in Financial Regulation design. Furthermore, orthodox models used in Finance and Risk Management have been object of serious scrutiny after the financial crisis. Questions are been raised on model’s unrealistic assumptions such as rational expectations and the exclusion of heterogeneous and incomplete knowledge (coping with fundamental uncertainty). Mainstream models have been also dramatically falsified by the financial crisis (such as common measures of Market Risk). Finally, many scholars are also engaged in exploring model design based on disequilibrium analysis. Do we need to move toward a new paradigm in Finance? What are the latitude and longitude of such paradigm shift?

FRC Working Paper Series

Papers in the FRC Working Paper Series do not undergo the same review as official UFM FRC publications; in particular, they are not submitted to the Board of Advisers for approval. They are intended to make the results of FRC research available to other economists in preliminary form to encourage discussion and suggestions for revision before publication.

Normally the review process will be completed within two weeks of the call for papers deadline. If the paper is accepted, it will be published in the FRC Working Paper Series.

Each paper accepted in the FRC Working Paper Series will be assigned a member of the Editorial Board as a tutor. The tutor is a senior researcher who has publication experience with leading journals. Tutors support the author(s) in order to improve the quality of the paper. Once a paper is ready for submission to a journal, it is up to the author to decide whether to publish it in the Journal of New Finance or in an indexed journal. In the latter case, FRC requests the author acknowledge the center’s support in preparing the published paper.

Journal of New Finance

Original research papers and articles in the FRC Working Paper Series will be considered for publication in the Journal of New Finance. (These papers and articles should not be currently under review or appear in other publications.)

The Journal of New Finance is a peer-reviewed, publicly available open access online journal. It provides a dedicated forum for practitioners and researchers working in finance, regulation, and investment.

Papers are received on a continual basis for double-blind review.

Copyright: Articles, papers, or cases submitted for publication should be original contributions and should not be under consideration for any other publication at the same time. Authors submitting articles/papers/cases for publication warrant that the work is not an infringement of any existing copyright, infringement of proprietary right, invasion of privacy, or libel and will indemnify, defend, and hold UFM FRC or sponsor(s) harmless from any damages, expenses, and costs against any breach of such warranty. For ease of dissemination and to ensure proper policing of use, papers/articles/cases and contributions become the legal copyright of the UFM FRC unless otherwise agreed in writing.